The Boldness of a Simple Thank You in Business

mbuhay
October 26th, 2011

It’s a safe bet that TV barfly Norm Peterson kept returning to the place where “everybody knows your name” for a host of reasons besides the warm way in which he was greeted by the crowd upon each arrival.

Norm’s legendary bar tab – which owner Sam Malone jokingly referred to as his future retirement fund that was hidden away in a safe – would likely qualify as one of the most generous examples of a form of customer appreciation: the “buyback.”

As Norm’s buddy and human encyclopedia Cliff Clavin might intone, according to Urban Dictionary a buyback is “when a bartender gives a patron a drink ‘on the house.’ This usually occurs after the patron purchases three or more drinks.” Evidently, Sam had granted Norm one in perpetuity.

A buyback is the sort of folksy, personal gesture of thanks that one tends to encounter in smaller establishments. Sadly, we are encountering fewer of these courtesies. Can you remember the last time a cashier rounded down the price charged rather than trouble you for change? Or how about discovering that 13th pastry or roll slipped in with your purchase to make a baker’s dozen? These expressions may even seem rather quaint, as though you have stumbled upon an artifact from a bygone era and cannot determine its purpose.

Lavished with Attention

Today’s consumers could hardly claim to feel unloved. They are lavished with attention from marketing offers of free shipping and returns, buy-one-get-one-free, or loyalty programs where points can earn free upgrades.

A 2011 Smart Money article reported that the average U.S. household holds memberships in 18 consumer rewards programs. The article also suggests that participation doesn’t necessarily signify loyalty. Rockwell Clancy, vice president of financial services at J.D. Power & Associates, describes the schemes as “hostage programs” because points-hungry consumers won’t readily drop out even though they end up paying higher prices or experience inadequate service.

What’s missing? Emotion, pure and simple.

Where is the merchant’s desire to convey appreciation by quietly delighting the customer? How can a relationship based on what amounts to a contract for transactions be expected to outlast the program’s expiration date? Amid all the wheeling and dealing, the surprise of an unadulterated “thank you” might instead be met with suspicion or bemusement.

In this complex world, it may seem impossible for marketers to restore simple acts of kindness in a customer relationship strategy.

Lagniappe

Stan Phelps, author of the forthcoming book, “What’s Your Purple Goldfish?”, believes the biggest marketing challenge facing businesses is that most conventional efforts are centered on the acquisition of future customers. This myopic approach by businesses “preoccupied with getting new customers through the purchase funnel” ignores current customers – the very influencers whose advocacy can help companies promote their market differentiators.

“Retention is now more important than ever before as a new customer costs 10 times the amount of retaining a current one,” says Phelps. “Today’s businesses need to find ways to stand out from the competition through differentiation via added value. Giving little unexpected extras (‘purple goldfish’) helps you retain customers and more importantly gives them something to talk, tweet, blog and Facebook about.”

Phelps posits that businesses would be better served by investing their efforts into a concept he calls “marketing lagniappe.” Based on the Creole word meaning gift, the idea is that businesses can shape memorable customer experiences by doing unexpected things like giving away a bonus or extra quantity of an item at the time of purchase or interaction with the brand.

Among the 12 types of bonuses outlined in Phelps’ book are those which engage customers by communicating appreciation, acknowledging mistakes or inconvenience, or offering product samples.

For instance, guests receive free candy bars upon check-in and more chocolate treats on their pillows at night at Hershey Lodge and Hotel properties. Many Lexus dealerships provide car washes at no charge to owners after service is completed on their vehicles. Ikea offers free breakfast promotions as well as a play area called Smaland with complimentary supervision for children, initiatives which the New York Times reports may have contributed to increased sales when other home furnishings competitors were struggling. According to the article, Natalie Berg, a senior analyst with London-based consulting group Planet Retail, observes: “At a time when families are cutting back on vacations and restaurant visits, an outing to Ikea suddenly sounds quite attractive – especially when you throw in free baby-sitting and cheap food.”

Treasured Gift

The word “thanks” shares its origins with those for “think” and “feel,” which may explain why the simple generosity of sharing small tokens of appreciation with customers can have a profound emotional impact.

Writer David Kramer recounts for the New York Times a split-second decision he made to jump into his very first bar fight because he wanted to avoid being alienated for his cowardice: “… every free drink that I had ever had, and the potential of that ending forever flashed before my eyes. No more special treatment. No more buybacks … The thought was staggering. I just had to do something.”

Incentives may coax a customer toward more purchases or cause a change in thinking, but it’s the more intimate gestures of kindness that inspire passionate customers to bestow on a business the most treasured gift of all: their trust.

(This post is an excerpt from an article written by Mary C. Buhay, vice president at Gibbs & Soell Public Relations, and originally published in the G&S Insight newsletter. Read the entire article.)

Global, Shmobal

Jeff Altheide
March 16th, 2011

Despite all the talk of a “global economy” and the “globalization of markets” the world is not – and never will be – one homogenous mass.

Those with marketing or communications responsibilities across multiple countries realize that true success is based on understanding and addressing the unique interests and needs of dozens, sometimes hundreds, of sub-markets. 

Markets may divide by geography, language, culture, regulation, economic value, competition or countless other factors.  The more finitely you understand your customers and communicate on their terms, the more effectively you’ll build lasting relationships with them.

Gibbs & Soell is an active member of Public Relations Organisation International (PROI) , a tight-knit collection of more than 50 independent public relations agencies in nearly 40 countries.  PROI’s tagline is “Local Intelligence Delivering Global Impact.”  The very premise of PROI is that “global” communications programs are best built from the ground up under a common strategy, not standardized in a big vanilla blanket.

In a panel discussion at a recent PROI meeting, we addressed many strategic aspects of client service across geographic regions. 

One outcome of that discussion was an article  just published in India’s Business Standard newspaper, which I co-authored with Sharif Rangnekar, Director and CEO of Integral PR  in New Delhi, on the rapidly splintering digital communications universe. 

Yes, even the online world – which some promised would provide universal access to everyone you’d ever want to reach – is becoming an ever-more-fragmented domain, driven by overlapping technological, economic and social influences. 

Whether you’re approaching an Indian population devouring 4,000 daily newspapers, a product market spanning several countries, or even a splintered online community, the bottom line is to understand exactly who you are trying to communicate with and then speak to them in their own language – both literally and figuratively.

(Contributor Jeff Altheide is a senior vice president at Gibbs & Soell Public Relations and oversees growth strategy and innovation for the firm.)

Go East, Young Man

Jeff Altheide
November 15th, 2010

Sure, we’ve all read about it in business magazines.  But attending the PR & Media China Congress in Hong Kong recently, sponsored by the Asia Business Forum, showed me first-hand the rapidly evolving state of our profession in this dynamic business environment.

Two days of presentations from corporate PR leaders, agencies, NGOs and researchers (coupled with my meetings with Gibbs & Soell agency partners in Hong Kong and Beijing the balance of the week) left me in awe of the complexity, diversity and light-speed change inherent in the region.

Just a few highlights:

Media Relations?  Changing.  While “pay to play” still rules with some media, journalistic professionalism is increasing and reporters are open to bigger stories that explore market trends and research or business development perspectives from corporate leaders.  They’re interested in stories about large scale businesses and how multinationals have grown.   

Social Media?  Changing.  Media coverage in the U.S. has emphasized the Chinese “Great Firewall” and restrictions and blockages of foreign social media sites in the country.  But there were multiple examples discussed of Chinese citizens fighting or supporting companies and organizations through online communities.  One story had 200 Smart cars being sold on Taobao (a prominent retail site) in just over three hours via a Groupon-type discount promotion.  Many Chinese citizens are active and opinionated posters on QQ and other popular channels.

Investor Relations?  Changing.  According to Gibbs & Soell partner Strategic Public Relations Group, 2010 saw the first-ever listings on the Hong Kong stock exchange for companies from Russia, Canada, France, Germany and Mongolia.  The Chinese government is expected to eventually remove or reduce restrictions on citizens owning foreign stocks.  More investments and more investors… more need for dynamic investor relations services.

Corporate Social Responsibility?  Changing.  While many companies still see CSR as philanthropic photo ops with oversized checks, the dedication to and sophistication of corporate programs is improving.  Oxfam Hong Kong reported the number of Hang Seng Index companies voluntarily responding to its CSR Survey doubled from 34 percent in 2008 to a 74 percent response rate in 2009.  While much work remains, Chinese companies are taking broader CSR initiatives more seriously and the local media are increasingly holding them accountable. 

Speaker after speaker, example after example, I couldn’t help but think of the exciting time ahead for PR professionals and businesses in China.  I’m glad G&S, our partners and our clients will be a part of it.

(Guest contributor Jeff Altheide is a senior vice president at Gibbs & Soell Public Relations and oversees growth strategy and innovation for the firm.)

Weakness Has Left the Building

Ron Loch
July 1st, 2010

At a recent swim meet I attended, one of the swimmers was wearing a t-shirt that said, “Pain is Weakness Leaving the Body.” 

I immediately rushed to use that bit of inspiration on my daughter who was getting ready for a race.  I promptly received the “Dad, you’re lame” look.  But I do find it to be an inspiring point of view; if not for my teenage daughter, perhaps for organizations striving to become more sustainable

Change, even when it makes an organization stronger, is often painful. 

This is reflected in a survey of CEOs by the United Nations Global Compact and Accenture.  Of the 720 executives surveyed, 93 percent said that sustainability is important to the strength of their organization, and 80 percent believe that fully integrating sustainability across their business will happen within 15 years. 

However, nearly half pointed to the complexity of implementation across functions and competing strategic priorities as significant barriers to an enterprise-wide approach to sustainability.  These are common barriers that often fatigue important initiatives and stress communicators charged with implementing organizational change. 

In fact, the same change management principles we employ when communicating about mergers and acquisitions, downsizing or restructuring apply to creating a corporate sustainability mindset. 

  • Gain sponsorship from senior executives:  The power of the C-suite is critical to establishing sustainability as a business priority.  If it is crucial to the success of the organization, that importance must be reinforced with nearly every interaction.
  • Deliver relevant messages:  It’s not enough to tell employees why sustainability is important to the company; they need to know why it’s important to them and their career.    
  • Rethink how you communicate success:  Competing priorities suggest that reward systems are out of whack.  If production numbers are traditionally promoted, but not energy cost reductions, then energy conservation will not appear to be a critical business priority.  Forget tradition and look at communications through a new lens.
  • Create feedback loops:  Talking at employees produces little change.  Create ways for employees to engage in the conversation about sustainability initiatives and you can gauge your success in making it a company-wide priority.
  • Grin and bear it:  Let’s face it; change communications can be a pain when you are fighting entrenched interests and legacy processes.  But, take heart.  You’re helping to build a stronger, more successful and sustainable enterprise. 

After all, that pain is just weakness leaving the organization.

 (Guest contributor Ron Loch is a senior vice president at Gibbs & Soell Public Relations. He leads the firm’s Greentech & Sustainability Practice, collaborating with G&S colleagues specializing in advanced manufacturing and energy, agribusiness and food, consumer lifestyle and building solutions, professional services, and technology and general science.)

Greentech: Engine vs. Bandwagon Jumper

Ron Loch
May 19th, 2010

Michael Kanellos at Greentech Media wrote a great perspective earlier this month, “Why There is No Google of Green,” where he provides eight reasons why the greentech revolution is different than the Internet. 

While he’s spot-on about the reasons why there’s a difference, the fact he felt compelled to write the piece has me concerned.  

He writes that not a week goes by that someone doesn’t ask the question, “Where is the Google of green?”  Couple that with statements by corporate executives and venture capitalists that greentech will be “larger than the Internet” – and greentech has the hallmarks of a bandwagon.  

The greentech and renewable energy space is decades old, and it’s certainly seen its share of advancements and setbacks.  In fact, few people realize that in the early 1900s electric cars outnumbered gasoline automobiles.

What’s currently fueling the excitement among market watchers are recent developments, including the approval of the first U.S. large scale, offshore wind farm, the proposed Senate climate and energy bill, and a worldwide recognition that we must control carbon emissions.

That’s great because it attracts more investment. But, on the flip-side, you inevitably have an influx of service providers looking to exploit early stage enthusiasm to maximize short-term income.   

As new technologies approach commercialization, they often get a second look by the supply chain which can lead to a “too-good-to-be-true” narrative.

Companies in the greentech space need partners – whether lawyers, business consultants or communications agencies – that can navigate them through the challenges that inevitably follow launch to ensure they prosper and succeed.

After all, every bandwagon will have its share of jumpers, but they do nothing to move the float forward.  For that, you need an engine.  

That’s the thinking behind the recent announcement from Gibbs & Soell about our new greentech and sustainability practice. It’s an engine powered by a depth of client experience with clean technologies and sustainable practices.

Check us out, and contact me at rloch@gibbs-soell.com or (847) 519-9150 to learn more about our work.

(Guest contributor Ron Loch is a senior vice president at Gibbs & Soell Public Relations. He leads the firm’s Greentech & Sustainability Practice, collaborating with G&S colleagues specializing in advanced manufacturing and energy, agribusiness and food, consumer lifestyle and building solutions, professional services, and technology and general science.)

Adding Horsepower to Trade Show Presence

Gardner Hatch
January 8th, 2010

My earlier post provided one manufacturer’s perspective on how next week’s AG CONNECT Expo 2010 will offer a unique interaction with customers and prospects. The global ag show warrants a fine-tuned approach for those who are exhibiting.

My interview with Phil Jones, brand marketing manager of agricultural equipment manufacturer AGCO Corporation, showed that the company indeed plans to make every effort to interact with all types of customers.

I was particularly impressed to hear how AGCO is also adding extra horsepower to trade show staffing and programming. Global experts at every level will be flying in, starting with the company’s senior staff — from the CEO to the head of global engineering and head of North America marketing. Senior technical experts, including representation from global engineering and product development, also will be on hand to talk shop.

In addition to showcasing its machinery, AGCO will be geared up to cover issues facing the industry, including presentations on Tier IV Emissions Requirements. An AGCO lounge area will offer visitors a chance to engage thought leaders and have informal discussions. A company sponsored industry roundtable — a first-ever for AGCO — on biofuels will feature experts from the field to the pump.

“In essence, we’re bringing in experts and an experience so we can address what’s top of mind with customers at every level — from senior management to technical and from U.S. to global,” Phil said.

AGCO has added a lot of horsepower to its presence. It will be interesting next week to see how others have approached the show to reach new audiences.

Next week, follow me at the show on Twitter: @agribizpr


(Guest contributor Gardner Hatch is a managing supervisor with the agribusiness team at Gibbs & Soell Public Relations.)

All Revved Up for AG CONNECT Expo

Gardner Hatch
January 6th, 2010

Agri-marketers and manufacturers from around the world are making a beeline to Orlando next week for AG CONNECT Expo 2010, the first agricultural show produced by the Association of Equipment Manufacturers (AEM).

It’s a global ag show — the first of its kind — that is bringing thousands of growers and suppliers from around the world.

As a 20-plus-year agribusiness veteran, I’m pumped up about this show, which is seeking to break new ground as a networking and marketing opportunity for agribusiness. And one week in advance of the show, no one is revving it up more than agricultural equipment manufacturer AGCO Corporation

Phil Jones, brand marketing manager of AGCO, calls the show “something that’s extra special,” and the company is pulling out all the stops in its trade show marketing campaign.

“This show has an entirely different promise,” said Phil. “The show is much more targeted on the emerging, large professional grower audience. AG CONNECT is an incredible opportunity for us and the industry to showcase our latest and greatest technology.

Like most exhibitors at the show, AGCO is focusing on the larger growers who are planning to attend and are ready to engage in business and educational discussions. These are the customers who will want to see the new products and future technology, and that’s just what AGCO intends to deliver. In addition to its most current models, AGCO will also feature technology that won’t be commercialized for another year or two.

In the coming days, I’ll post more on AG CONNECT Expo and AGCO’s trade show activities. And you can get a preview here:

Next week, follow me at the show on Twitter: @agribizpr

(Guest contributor Gardner Hatch is a managing supervisor with the agribusiness team at Gibbs & Soell Public Relations.)

Any Bold Predictions for 2010 Game-Changers?

Brian Hall
December 16th, 2009

I wanted my last blog of 2009 to be unique and memorable, so here you go: It’s not about Tiger Woods! That alone should separate me from every other PR flak writing a blog this month…

What a year it’s been for the PR and communications profession. It’s hard to believe that one year ago I didn’t have a Facebook account and didn’t even know what Twitter was. Now I am Tweeting in real time as part of my daily routine. And I’ve reconnected with dozens of “friends” on Facebook I had forgotten I ever had. I didn’t have an iPhone until August — now I could not and would not ever live without it.

It got me thinking — what is out there right now that I don’t currently know much about or employ in my daily routine, but that will have a major impact on our professional and personal lives in 2010?

Is it an emerging social media site? Could it have something to do with geolocation? Or maybe it’s a new device that we won’t be able to live without. Someone at a communications industry networking event last week suggested it could be the increased use of social bookmarking. I could buy into that theory.

What do you think? Any and all bold predictions welcome!

Also, Happy Holidays to all of our readers and best wishes for a prosperous 2010.

Back to the Future — In Digital Era, News Release Still Rules

Brian Hall
November 2nd, 2009

I have spent a heck of a lot of time this year talking and writing about digital and social media. But a conversation I had recently with Rich Jefferson, Sr. Director of PR at the Association of Equipment Manufacturers, reminded me that even in this era of “new” media, the news release remains one of the most important tools in our arsenal.

Rich should know — his two-person PR team at AEM has distributed more than 100 news releases so far this year. So when the 20+ year PR veteran says things like “the news release is the most important, flexible, multi-faceted, communications tool we have going” or “the better the news release the better your business,” you know he really, really believes it.

And as AEM helps its members push for legislative support for funding to build the next generation of roads, bridges and rail through grassroots efforts like the Start Us Up USA! campaign, Rich says a news release-focused strategy has helped build a communications foundation that has put the association “on the map” during the past two years by creating a constant flow of news about the association in the media and online.

Key #1 is thinking beyond the journalist and segmenting your audience. “Not every news release is intended to generate coverage in the Washington Post,” he said. Some releases are meant to reach a smaller, more targeted list of trade media, for example.

Equally important in today’s online world, he said, the news release is a powerful tool for reaching your target audience directly. I couldn’t agree more — I frequently recommend SEO-friendly, multimedia news releases as a way to generate traditional and online coverage and reach audiences directly in a powerful way.

Having a library of news releases essentially creates your own searchable online database. And while Rich and I agree that the incorporation of key words can be a bit “clunky” from a journalistic standpoint, it is a great way to ensure people find your news via Google, Yahoo, Bing and other search engines — where most consumers and professional begin any search for information these days.

News Release Key #2 from Rich — be at the table where decisions are made and strategies are defined. PR people have to start “pounding their drums,” he said, letting executives know they should bring PR pros into strategic planning instead of just contacting the PR department or firm as an afterthought and having them draft a release. “Getting PR involved up front can not only streamline the process — it can lead to the creation of content that can generate profits.”

By the way, just because Rich advocates for frequent use of news releases does not mean he doesn’t believe in digital and social media as well. He is involved in many online communities and distributes news releases and other information via LinkedIn and other channels to ensure he is reaching his target audience as well as possible.

Rich’s News Release Key #3: As Gatorade says — “Be Like Mike.”

“What did Michael Jordan do to practice? He dribbled. He shot. He focused on footwork. The basics. That’s what a news release is. It is so basic, yet so important at the same time.”

Creating PR Magic with Trade Media 2.0

Brian Hall
June 25th, 2009

This week, I want to share an anecdote that really hits home with me as I think about the ever-changing world of media relations.

David Meerman Scott, author of The New Rules of Marketing & PR, told attendees at the recent BMA Annual Conference about how the PR team at the Universal Orlando Resort took a new approach for the announcement of the “Wizarding World of Harry Potter” attraction. Instead of distributing the news to hundreds of mainstream media outlets — as we all have a tendency to do with big news — they targeted only seven of the leading Harry Potter bloggers, providing them with the news during a special midnight webcast. And while he said the lead PR manager feared being fired if it didn’t work, the results were spectacular. Through the power of Web 2.0, the story went viral, generating impressions on 350 million Harry Potter fanatics within 24 hours. Impressive… even magical one might say!

The strategic approach they used can generate PR magic for Advanced Manufacturing & Energy communicators as well. We B2B types know full well that trade media remains a great way to reach our audience. We just need to be sure we think beyond the traditional print story. By tailoring our content and approach for their e-newsletters, blogs, online videos or podcast — or “Trade Media 2.0″ as I like to think of it — we too can capitalize on the power of digital media to spread our news to our B2B audiences.

Let’s share some additional examples — anyone have a Trade Media 2.0 success story they can share with our readers?

hs56cwv7ag